Written by The Banking Post
Bank Asia has approved a Tk 10 billion Green Sustainable Subordinated Bond aimed at strengthening its capital base and financing environmentally sustainable projects.
The approval came at the bank’s 584th board meeting held on May 6, according to a corporate disclosure.
The proposed bond will be non-convertible, unsecured, fully redeemable and coupon-bearing, with a floating interest rate. It will carry a seven-year tenure and will be issued through private placement.
Bank Asia said the proceeds will be used to reinforce its Tier-II capital in compliance with Basel III regulatory requirements, while also supporting eligible green and sustainable financing initiatives.
The move reflects growing interest among banks in raising long-term funds through sustainable finance instruments, as lenders seek to meet stricter capital standards and align financing with environmental goals.
The bond issuance, however, will require approval from regulators, including Bangladesh Bank and the Bangladesh Securities and Exchange Commission, before it can proceed.
